A Caffe Luxxe location in Long Beach. All images courtesy of Caffe Luxxe.
Premium candy chain Sugarfina has acquired Los Angeles-based specialty coffee company Caffe Luxxe in a deal valued at approximately $24.5 million.
The 100% common stock deal involves a reverse triangular merger, through which Artisanal Expressions Inc. (doing business as Caffe Luxxe) is a wholly owned subsidiary of Sugarfina.
According to an SEC filing outlining the agreement, Caffe Luxxe co-founders Mark Wain and Gary Chau will continue to lead the company, with three-year-minimum employment agreements.
Founded in 2006, Caffe Luxxe has become a fixture in the Los Angeles specialty coffee scene, known for European-inspired cafes.
Wain told Daily Coffee News that formal discussions between the two companies evolved several months ago when Luxxe was exploring selling Sugarfina products in its cafes.
“The owners are — and have been — regular Caffe Luxxe customers for a long time, and truly understand and appreciate what makes Caffe Luxxe different, what makes us special, and are committed to ensuring that we stay that way,” Wain said.
Caffe Luxxe in Montecito.
Caffe Luxxe currently operates seven retail locations — primarily in affluent L.A.-area neighborhoods — plus a dedicated roastery. The company plans to open a Culver City cafe in January and to rebuild its Pacific Palisades shop, which was destroyed in a fire earlier this year.
Sugarfina, which bills itself as a “candy boutique for grown-ups,” is known for its Champagne Bears gummies, Candy Bento Box gift sets and other premium confectionery collaborations. The company has seven company-operated boutique stores and an online store, plus products in department stores and through wholesale distribution.
“We are thrilled to welcome Caffe Luxxe into the Sugarfina family and look forward to combining our shared passion for creating memorable experiences for our customers,” Scott LaPorta, CEO of Sugarfina, said in an announcement of the deal. “I have been a longtime fan of the Caffe Luxxe brand, frequenting their locations, which have always stood out for exceptional quality and community presence. We are excited to bring this exact presence and quality to new communities in the near future.”
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Nick Brown
Nick Brown is the editor of Daily Coffee News by Roast Magazine.
